The Trump administration has ordered an effective shutdown of the Consumer Financial Protection Bureau (CFPB), directing the agency to stop investigations, suspend rule implementations, and cease supervision activities. Russell Vought, the newly appointed director of the Office of Management and Budget, issued the order in a Saturday night email.
Newsweek reached out to the White House and CFPB via email on Sunday for comment.
Why This Matters
The CFPB was first created after the 2008 banking recession to protect customers from unfair and predatory corporate behavior. Since its founding, the CFPB has secured nearly $20 billion in financial relief for U.S. consumers through canceled debts, compensation, and reduced loans.
Conservatives have widely targeted the agency since former President Barack Obama pushed to include it in the 2010 financial reform legislation that followed the 2007-2008 financial crisis.
Most recently, the bureau sued Capital One for allegedly misleading consumers about high-interest savings accounts, claiming the company “cheated” customers out of more than $2 billion in lost interest payments.
What To Know
Earlier this month, Treasury Secretary Scott Bessent took over the CFPB, and mandated a complete halt of and review of services to “promote consistency” under President Donald Trump’s administration.
The current shutdown directive encompasses multiple aspects of the agency’s operations. The agency must stop work on proposed rules and suspend the effective dates of any finalized but not yet effective rules. All investigative work must cease, and no new investigations can begin. The memo also ordered the bureau to “cease all supervision and examination activity.”
While the CFPB can still take complaints, it cannot conduct examinations or pursue existing investigations. The order is also interpreted as blocking communication with regulated companies, consumer advocates, and other outside groups.
Additionally, Vought announced the CFPB would no longer withdraw funds from the Federal Reserve, describing its current financing of $711.6 million as “excessive.” The agency’s website was down Sunday, replaced by a “page not found” message.
What People Are Saying
Elon Musk, leader of the Department of Government Efficiency (DOGE), said on X: “CFPB RIP”
Treasury Secretary Scott Bessent said in a previous statement: “I look forward to working with the CFPB to advance President Trump’s agenda to lower costs for the American people and accelerate economic growth.”
Elizabeth Warren, Democratic Massachusetts Senator: “The Consumer Financial Protection Bureau is the main agency in our government that is actively working to stop unfair de-banking.”
Warren said previously: “Shutting down CFPB enforcement actions that are on the verge of delivering money into the pockets of working people is at odds with President Trump’s claim that he wants to lower costs for families — which he has done next to nothing on so far.”
Russell Vought, Acting CFPB Director said on X: “This spigot, long contributing to CFPB’s unaccountability, is now being turned off.”
What Happens Next
Since the CFPB is a creation of Congress, its complete elimination would require a separate act of Congress. However, the head of the agency has discretion over what enforcement actions to take, if any.
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